Andhra Pradesh

Chittoor-II at triputi

CC/101/2016

Thokala Sudarshana Kumar, S/o Eswar Reddy - Complainant(s)

Versus

M/S Kapil Chits (Hyderabad) Private Limited, represented by its Managing Director - Opp.Party(s)

D.Jayachandra

15 Nov 2017

ORDER

         

 

                                                                                                Filing Date: 22-12-2016                                                                                                               Order Date: 15-11-2017

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, CHITTOOR AT TIRUPATI.

Present: - Sri. Ramakrishnaiah, President

                                                       Smt. T.Anitha, Member

 

WEDNESDAY THE FIFTEENTH DAY OF NOVEMBER, TWO THOUSAND AND SEVENTEEN

 

C.C.No.101/2016

Between

Thokala Sudarshana Kumar, S/o. Eswar Reddy,

Hindu, aged about 34 years, Cultivation and self employed,

Residing at H.No.36, Panakam Village, Tirupati.                                     … Complainant

 

And

1. M/s. Kapil Chits (Hyderabad) Private Limited,  a Company

Registered under Companies act, 1956, represented by its

Managing Director having its registered office at 3-6-9/10,

1^st Floor, Vivekananda Nagar, Kukatpalli, Hyderabad, 72.

 

2. M/s. Kapil Chits (Hyderabad) Private Limited,  a Company

Registered under the Companies act, 1956, represented by its

Branch Manager having its branch office at Plot No.10,

Mitta Enclave, R.C.Road, Tirupati.                                             … Opposite parties 

 

         This complaint coming on before us for final hearing on 02.11.2017 and upon perusing the complaint, written arguments of the complainant and other relevant material papers on record and on hearing of Sri. Desineni Jayachandra counsel for the complainant and opposite parties are remained exparte having stood over till this day for consideration, the Forum made the following.

ORDER

DELIVERED BY SMT. T. ANITHA, MEMBER

ON BEHALF OF THE BENCH

        This complaint is filed under Section- 12 of the Consumer Protection Act 1986, by the complainant complaining the deficiency in service on part of the opposite parties and prayed this Forum to directing the opposite parties  to gave credit a sum of Rs.74,342/- which they have deducted from the prize money along with interest 18% p.a. from 27.11.2014, to credit Rs.78,896/- being the illegal deductions made towards penalty, interest, interest others, guarantor notice charges and remainder charges for the unpaid subscription amount by the complainant and to pay a  sum of Rs.5,00,000/- towards compensation for deficiency in service towards the complainant and to pay costs of the complaint.

       2. The brief facts of the case are:   One Pandari Kumaraswamy Reddy joined as a subscriber in the chit group of the opposite party for Rs.20,00,000/- for a period of 50 months and monthly subscription was Rs.40,000/-. Since the above subscriber was a defaulter in payment of subscription amount the opposite parties removed him another a said chit and the complainant joined in the place of the Kumaraswamy reddy after paying unpaid subscriptions of Kumaraswamy Reddy on 22.06.2013 and 24.08.2013. The complainant further submits that as he stood as a highest bidder in the auction he prized the bid after foregoing an amount of Rs.5,00,000/- in the month of July, 2014 and he submitted the sureties. Even after receipt of the sureties the opposite parties failed to release the prize amount after repeated requests made by the complainant, the opposite parties release an amount on 26.12.2014 by deducting Rs.5,00,000/- for the future subscriptions and also deducted Rs.7,500/- towards insurance policy amount and issued cheque for Rs.8,21,800/- towards the prize money and also the opposite parties deducted another Rs. 1,50,700/- was deducted towards the unpaid subscriptions.

       The complainant further stated that the opposite parties deducted for a sum of Rs.5,00,000/- and further submits that the complainant need not pay the installments till the amount of Rs.5,00,000/- with interest will be adjusted and completion of the amount they will only the complainant and then he can pay the amount. By believing the words of the opposite parties the complainant waited for the information from the opposite parties. The complainant further submits that on 29.03.2015 the employee of the opposite parties demanded to pay Rs.35,000/- as the financial year ending and the complainant issued a cheque after receipt of the said cheque there was no information from the opposite parties. The complainant further stated that the opposite parties deducted a sum of Rs.39,006/- under the head of “interest others”, Rs. 1,944/- under the head of “penalty” and Rs.35,121/- under the head of “interest” from and out of the amounts paid by the complainant. Apart from that the opposite parties illegally deducted Rs.200/- each on 12 auctions totally 2,400/- towards guarantor notice charges and Rs.425/- towards remainder charges. Thus in total the opposite parties illegally deducted Rs. 78,896/- from the subscription amounts paid by the complainant.

        3. The complainant further stated that he came to know that by the statement of account, the opposite parties credit only a sum of Rs.1,29,900/- to the subscription amounts due from the date of auction till the date of disbursement of prize money on 27.11.2014 instead of Rs.1,50,700/- the opposite parties have not credited in the account of complainant of Rs.20,800/- which they have credit the same in the account of complainant. The complainant has not credited Rs. 5,00,000/- which was deducted towards future subscription and deposit in the fixed deposit and their sisters company and has not paid the amounts within time and collected the interest and other charges. If they paid the subscription in time every month the question on default will not arise and also the opposite parties deducted only Rs.4,46,458/- only instead of Rs.5,00,000/- and also they have adjust Rs.53,542/-. Thus the opposite parties have to credit in total Rs.1,53,238/- to the complainant. The complainant further stated that on 28.06.2016 the employee of the opposite parties approached the complainant and demanded to pay subscription. Accordingly the complainant issued a cheque of Rs.67,000/- and requested to credit the same for future subscription. The opposite parties issued notice dt:07.10.2016 demanded to pay Rs.3,59,736/- towards unpaid subscriptions. Immediately the complainant went to the office of the opposite parties and requested to issue account statement but the opposite parties demanded to pay Rs. 2,00,000/- on 27.10.2016, but the opposite parties failed to furnish the same and finally the opposite parties issued a copy on 30.11.2016 after gone through the statement of account. The opposite parties came to know that they committed other illegalities and collected interest default charges etc. Hence he demanded to rectify the same and credit balance of amount of Rs.1,53,238/-  to his account. But the opposite parties failed to do so and send the notice on 09.12.2016 to the complainant and guarantors to pay a sum of Rs.2,34,634/- and went to the houses of the guarantors and defamed the complainant before them. Hence the complainant submits that the opposite parties have committed other irregularities and committed every amount though he was irregular in payment of subscription which is nothing but deficiency in service. Hence he filed the present complaint.  

        4. The opposite party no.2 filed the written version and same was adopted by the opposite party no.1. By denying the allegations mentioned in the complaint and further submitted that the complainant is a subscriber in the chit bearing No.FTPTO1S running by for Rs.20,00,000/- which actual commenced from 08.10.2012 and the complainant joined in the said chit on  25.10.2014 by paying previous installments. By paying previous installments as the actual subscriber was defaulter in the payment of subscription and the complainant became the successful bidder on 27.10.20143 by forego amount of Rs.5,20,000/-  and Rs.14,80,000/- has to be paid by the company to the complainant. The opposite parties paid Rs.14,80,000/- to the complainant by obtain sureties and issued cheque nos. 944,1116,1115,945 and 943 an amount of Rs.1,50,000/- , Rs.2,00,000/-, Rs.3,00,000/-, Rs.7,500/- and  Rs.8,21,800/- respectively and the complainant received the amount that full satisfaction.

       The opposite parties further submits that the complainant has paid 41 full and 42 part installments and became defaulter in paying further installments. Hence they issued demand notice through their counsel on 07.10.2016 to the complainant and the guarantors and to pay outstanding amount of Rs.3,59,736/- with interest 18% p.a. After receipt of the notice the complainant paid Rs.2,00,000/- on 27.10.2016 towards outstanding amount and the said amount was adjusted for to 42 part, 43 to 45 installments. After adjusting the complainant was due a sum of Rs.1,98,358/- by the date again the complainant committed defaulter in payment of further installment and due in total of Rs.2,34,634/- by the end of 50^th installment as the above said chit was concluded by the end of December, 2016. The opposite parties further submits that they issued notice on 09.12.2016 to the complainant and the guarantors to pay the due amount as he is having knowledge about dividend, penalties, interest etc. If at all after there is no doubt the complainant would have issued reply notice against said notice. But the complainant did not to do so and straight away filing the present case in order to harass officials of the company in order to get wrongful gain. Hence there is no deficiency in service on part of them and the complaint is liable to be dismissed.

       5. The complainant filed his evidence on affidavit and Ex: A1 to A4 were marked on

behalf of him. On behalf of the opposite parties after filing their written version failed to file the chief affidavit even after taking four months time. Hence the opposite parties called absent and set exparte.The complainant filed his written arguments and oral arguments were heard.

       6. Now the points for consideration are:-

              (i)  Whether there is any deficiency in service on part of the opposite parties    

                     towards the complainant?           

             (ii)  Whether the complainant is entitled to the reliefs as prayed for? If so?         

             (iii)  To what Relief?

        7.Point No (i):-    The main contention of the complainant is  as he joined existing chit in the place of the one Kumaraswamy Reddy who is a defaulter in payment of the subscription and he paid the unpaid subscriptions of the previous subscriber and joined in the month of March, 2013 and unpaid subscriptions on 22.06.2013 and 4.08.2013 and the chit was transferred in the name of him. As he stood as a successful bidder in the auction held in the month of July, 2014 and the complainant further submits that after repeated requests made by him the opposite parties failed to release the prize amount and finally on 26.12.2014 they issued a cheque for Rs.8,21,800/- towards prize money by stating that a sum of Rs.1,50,700/- was deducted towards the unpaid subscriptions by the date and also they withheld Rs.5,00,000/- towards future subscription and a sum of Rs.7,500/- towards insurance. But the opposite parties failed to issue the policy copy till the date of filing of the complaint. And further stated that they will refund the insurance amount within one year but they failed to do so, also the complainant stated that the opposite parties already deducted Rs.5,00,000/- from the prize amount and stated that the complainant need not pay the subscription amount because they will adjust Rs.5,00,000/- with interest for the future installments and after completing the above said amount they will send information hence the complainant waited for the intimation from the opposite parties and further submits that on 29.03.2015 the employee of the opposite parties demanded to pay a sum of Rs.35,000/- as the account year ending. Hence issued a cheque for the above said sum after that on 28.06.2016 the employee of the opposite parties approached the complainant and demanded to pay the subscription amount hence he issued a cheque for Rs.67,000/-. After that on 07.10.2016 the opposite parties issued notice to the complainant to pay a sum of Rs. 3,59,736/- hence the complainant immediately approached the opposite parties and requested to furnish the copy of the account statement. But the opposite parties demanded to pay Rs.2,00,000/- initially then only they will furnish the copy of the statement. Hence he paid a sum of Rs.2,00,000/- on 27.10.2016 at last on 30.11.2016 the opposite parties furnished the copy. After gone through the said copy he came to know that the opposite parties made several irregularities by collecting interest guarantors others and remainder charges. Hence as per chit fund act and as per the chit agreement and even after they entitled to charge any interest they have to issue such notice by specifying amount separately. But in this particular case the opposite parties illegal deducted a sum of Rs.30,006/- under the head of interest others, Rs.1944/- under the head of penalty and Rs.35,121/- under the head of interest from and out of the amounts paid by the complainant.

       8.Point No(ii):- 

        9.Point (iii):-   In view of our discussion on points 1 an 2, we are of the opinion that there is deficiency in service on part of the opposite parties, hence the complaint is to be allowed.

          In the result, the complaint is allowed in part directing the opposite parties 1 and 2 jointly and severally to pay the balance of Rs.21,100/- (Rupees twenty one thousand and hundred only) with interest at 9% p.a. from 27.11.2014 till realization, which was collected in excess illegally towards subscription from the complainant under cheque bearing No.944 dt:27.11.2014 for Rs.1,50,000/- instead of Rs.1,29,900/-. The opposite parties further directed to pay Rs.5,000/- (Rupees five thousands only) towards compensation for mental agony and deficiency in service on the part of the opposite parties towards the complainant, and also directed to pay Rs.2,000/- (Rupees two thousands only) towards costs of the complaint. The opposite parties further directed to comply with the order within six (6) weeks from the date of receipt of copy of this order, failing which the above compensation amount of Rs.5,000/- (Rupees five thousands only) shall also carry interest @ 9% p.a. from the date of this order, till realization. Rest of the claim is dismissed.

         Dictated to the stenographer, transcribed and typed by her, corrected and pronounced by me in the Open Forum this the 15^th day of November, 2017.

                                                                                                                                                                                                                                                                                                                 

  Lady Member                                                                                                           President

 

C.C.No.101/2016

APPENDIX OF EVIDENCE

 

witnesses examined on behalf of complainant/s.

 

PW-1: Thokala Sudarshana Kumar (Evidence Affidavit filed).      

                                           

witnesses examined on behalf of opposite party/s.

                                                                             

RW-1:  P. Naresh (Chief Affidavit filed).                                           

                                           

 

            EXHIBITS MARKED ON BEHALF OF THE COMPLAINANT/s     

 

Exhibits (Ex.A)	Description of Documents
	Bunch of Kapil Group receipts 6 in original.
	Photo copies of Kapil Chits (Hyderabad) Private limited, Tirupati account ledger between 01.01.2010 to 30.11.2016.
	Served copy of Notice. Dt: 07.10.2016.
	Served copy of Notice. Dt: 09.12.2016.

 

EXHIBITS MARKED ON BEHALF OF THE OPPOSITE PARTY/s

 

-NIL-

 

                           

                                                                                                    President

Copies to:  1) The Complainant, 

                  2) The Opposite parties.